Fast fashion giants Temu and Shein have warned US shoppers to expect price hikes from next week, as sweeping new tariffs on Chinese imports come into effect under Donald Trump's trade policy.

Both companies will lose access to the 'de minimis' exemption, which has allowed packages under$800 to enter the US duty-free. That change, taking effect from 2 May, will significantly raise costs for low-cost retailers who depend on cheap cross-border shipments.

The tariffs, which now reach up to 145%, are part of Trump's escalating trade war with China. His revised plans impose a tax of$75 per item, rising to$150 by June, for shipments that were previously exempt.

Shein has told customers its operating expenses have risen and prices will be adjusted from 25 April in an effort to maintain product quality while absorbing the new costs.

In response to the tariffs and likely slowdown in US demand, both companies have also scaled back digital advertising.

According to Sensor Tower, Temu's average US ad spend across major platforms dropped by 31% over two weeks, while Shein's spending fell 19%.

The tariffs are expected to reshape fast fashion in the US, though some experts believe prices may still remain competitive compared to domestic alternatives.

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